Punitive Damages

When you are injured because of another party’s negligence, intentional torts, or other wrongdoing, you can seek damages from the party who caused you harm. The most common damages in personal injury cases are called compensatory damages. These damages compensate you for your losses.

However, some personal injury lawsuits may result in punitive damages as well. These damages do not compensate the victim for losses but are paid when a jury determines they should be awarded based on the defendant’s egregious conduct.

Table of Contents

• Compensatory Damages vs. Punitive Damages in a Houston Personal Injury Lawsuit
• When Can Juries Award Punitive Damages for a Personal Injury Lawsuit in Texas?
• Texas Law Caps Punitive Damages in Most Personal Injury Cases
• What Is the Deadline for Filing a Punitive Damages Claim in Houston, TX?
• Schedule a Free Case Review With Our Undefeated Houston Personal Injury Lawyers

Compensatory Damages vs. Punitive Damages in a Houston Personal Injury Lawsuit

Economic and non-economic damages are forms of compensatory damages. Economic damages compensate you for monetary losses. Examples include medical bills, rehabilitative therapies, lost wages, and out-of-pocket expenses.

Non-economic damages compensate you for the pain and suffering the actions of the at-fault party caused. Examples include emotional distress, diminished quality of life, physical discomfort, and mental anguish. You can also receive compensation for scarring, disabilities, impairment, and disfigurement.

In contrast, punitive damages do not compensate you for injuries, harm, or losses. Instead, punitive damages “punish” the party who caused your injuries. Nonetheless, punitive damages are still given to the plaintiff.

When Can Juries Award Punitive Damages for a Personal Injury Lawsuit in Texas?

Punitive damages are referred to as exemplary damages in the Texas Civil Practice and Remedies Code. They are only awarded in a small number of personal injury lawsuits. Before awarding punitive damages, the law requires juries to find by clear and convincing evidence that the defendant’s actions met at least one of the following standards:

Gross Negligence

Gross negligence is defined as conduct that involves an extreme degree of risk, considering the scale and likelihood of the potential harm to others. It can be an act or a failure to act.

The defendant must have subjective awareness or actual knowledge of the risk involved if they act or fail to act. However, they proceed with a conscious indifference to the welfare, safety, or rights of others.

Malice

The Texas Code defines malice as a specific intent to cause substantial harm or injury to the victim. In other words, the defendant intended to harm the plaintiff. An example of malice could be assault.

Fraud

Fraud is defined as fraud other than constructive fraud. For example, actual fraud is an act that is performed with the willful intent to deceive. Constructive fraud takes place without the intent to deceive.

The victim has the burden of proving their case for punitive damages by clear and convincing evidence. Clear and convincing evidence is a higher standard of proof than the law requires for compensatory damages.

Texas Law Caps Punitive Damages in Most Personal Injury Cases

Caps are limits on the amount of money a plaintiff can receive. Even though a jury may award a higher amount, the court reduces the jury award to the cap provided by law.

Texas caps punitive damages for most personal injury lawsuits at:

• Double the amount of the financial losses (economic damages) the jury awarded the plaintiff plus the total of the non-economic damages the jury awarded, not to go above $750,000; or,
• $200,000.

Several exceptions exist to the cap on punitive damages. The cap may not apply if the case involves murder, aggravated assault, trafficking of humans, sexual assault, or aggravated kidnapping.

Courts also have the discretion to reduce the amount of punitive damages if they determine the amount is unconstitutional. The U.S. Supreme Court has established that a nine-to-one ratio generally does not violate a person’s due process. Anything above that amount could violate a defendant’s rights.

Texas judges consider several factors when determining whether a punitive damages award is constitutional. Those factors included:

• How deplorable or offensive was the defendant’s conduct;
• The difference between the award amount and the harm suffered by the plaintiff; and,
• The difference between the award and the civil penalties ordered in similar cases.

An experienced Houston personal injury lawyer reviews your case to determine whether the facts of the case support an award for punitive damages. If so, the attorney will discuss the merits of taking your case to trial instead of accepting a settlement offer.

In some cases, the threat of punitive damages could encourage an insurance company to offer a higher settlement. Therefore, it could be used as a negotiating tactic in a personal injury case.

What Is the Deadline for Filing a Punitive Damages Claim in Houston, TX?

A claim for punitive damages is included in your personal injury case. Therefore, the deadline for filing your claim is the same as the deadline for filing a lawsuit for your claim.

Most personal injury lawsuits have a two-year statute of limitations. There are exceptions, so it is best to speak with a Houston personal injury lawyer as soon as possible.

Schedule a Free Case Review With Our Undefeated Houston Personal Injury Lawyers

We offer free consultations at Zehl & Associates so you can learn about your legal options. Our Houston personal injury lawyers are undefeated and have recovered billions for our clients. Click here or contact us at 888-603-3636 to schedule your free case review.